Question

A manufacturing company hit by a slump in demand is experiencing a labor surplus. The company expects the market to improve in six months and it does not want to layoff any of its employees. Which of the following strategies is an equitable way to handle this issue that results in spreading the burden more fairly?A: Demotions
B: Outsourcing
C: Reduced work hours
D: Overtime
E: Employing temporary workers

Answer 1

Answer:

C. Reduced work hours

Explanation:

Demotions is the act of reducing the rank/position of an employee from a higher position to a lower position. This is mostly taken as a corrective measure or a punishment to an employee. This doesn't spread the burden more fairly.

Outsourcing is the process whereby a company gives out some or most of it task to an outside company to do. This mostly occur if the company lack the required expertise for the job or is highly occupied with many tasks. This doesn't spread the burden more fairly.

Reduced work hours is the correct option. It reduces the working time for employee and gives each employee a chance to share the work burden fairly.

Overtime is the period an employee works after the scheduled regular working time. This doesn't share the burden fairly as the rewards for overtime is what makes most employee do overtime.

Employing temporary workers is not the correct option. A company employ temporary workers if it has lots of works undone and it present employee capacity cannot meet to demand.